Tata Power to invest $125 mn in Indonesian project

Leading private power producer Tata Power expects to pump an equity investment of $125 million in a joint venture to develop the 240 MW geothermal project in Indonesia.

The company along with its consortium partners Australia's Origin Energy and PT Supraco Indonesia is developing the Sorik Marapi geothermal project in Northern Sumatra, Indonesia.

"For the geothermal (project), the total cost is estimated to be about $850 million, out of which 30% is equity," Tata Power Managing Director Anil Sardana told PTI.

"So, it will about $240 million and out of that 50% will be from our side, the remaining 50% from Origeon ... So, it will be about $125 million (from Tata Power)," he said.

The project's expected Commercial Operation Date (COD) is June 2015. It would be developed by PT Sorik Marapi Geothermal Power, a Special Purpose Vehicle of the consortium. In this, Tata Power and Origin Energy has 47.50% stake each and the rest is with PT Supraco Indonesia.

The Indonesian geothermal initiative is part of Tata Power's renewable energy portfolio that includes various hydro, solar and wind projects.

Tata Power intends to have 20-25% contribution in energy generated at all times from clean power sources that includes wind, solar, hydro and geothermal.

In wind, the entity has an installed capacity of 375 MW. at the end of December quarter. The company expects to have 300 MW solar-based capacity over the next 4-5 years.

Tata Power has over 447 MW installed hydro capacity.

The firm in partnership with Norway's SN Power has bagged two hydro projects— the 880 MW project at Tamakoshi in Nepal and the 236 MW Dugar project in Chenab Valley in Himachal Pradesh.

In a joint venture with Bhutan government, Tata Power is implementing the 114 MW Dagacchu hydro project.

"The hydro power project in Bhutan is expected to be commissioned in 2013 end," Sardana said.